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Because Amazon is comparatively low-margin vs. other tech companies, improved revenue has a much greater effect on earnings. Amazon's revenue was $88.9B vs. $8

Because Amazon is comparatively low-margin vs. other tech companies, improved revenue has a much greater effect on earnings. Amazon's revenue was $88.9B vs. $81.24B expected. That's each household spending about 10% more from Amazon, which is pretty reasonable with lockdown and nobody going to brick & mortar retail outlets. But with expenses at around $80B, that translates into earnings of $10.30/share vs. $1.51.

mikeschmatz 6y ago
> Because Amazon is comparatively low-margin vs. other tech companies, improved revenue has a much greater effect on earnings. Are you saying that 10% revenue increase has led to 10x earnings beat? That doesn't make any sense.
- UncleMeat 6y ago
  If a lot of their costs are fixed it makes sense.
- esoterica 6y ago
  How does basic arithmetic not make sense? If you were expected to make $1.01 and spend $1, and instead you made $1.10 and spent $1, your revenue only beat by 9% but your income beat by 900%.